Utilizing Extensibility for Enhanced Flexibility in Configuring CBA Compliance Rules with Legion WFM

December 28, 2023

by Sony Hans

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Collective bargaining agreements (CBAs) often come with complex rules and calculations that vary widely between companies and industries. To meet the unique requirements of these agreements, Legion Workforce Management Software (WFM) provides a flexible approach by allowing the use of formulas in our extensibility framework. This flexibility enables organizations to precisely configure and adapt the system to match the specific terms and conditions of their CBAs.

Here’s how the use of extensibility enhances flexibility in configuring CBA compliance rules with Legion WFM:

  • CBAs may include provisions related to job premiums, incentive pay, or other specialized compensation rules. Legion WFM’s formula functionality allows organizations to create custom calculations for these unique provisions. This means that even the most complex and industry-specific CBA terms can be accurately implemented.
  • When CBAs are renegotiated or updated, formulas within Legion WFM can be quickly modified to reflect these changes. This agility ensures that the system remains aligned with the latest CBA terms without requiring time-consuming software overhauls or manual workarounds.

Now, let’s focus on how extensibility can be used to specify formulas that determine premium and overtime pay rates according to various parameters such as hours worked, shift differentials, and particular employee attributes.

We’ll use an example of a hypothetical CBA that outlines the overtime and premium pay rules for employees who work on weekends and during night shifts. The CBA specifies the following terms:

John Smith is an hourly employee with a base hourly rate of $15 per hour.

According to John’s CBA, the following rules will apply.

  • Night Shift Premium: Additional $2 per hour for hours worked between 10:00 PM and 6:00 AM
  • Weekend Premium: Additional $3 per hour for hours worked on Saturdays and Sundays
  • Daily Overtime Threshold: Employees are eligible for overtime if they work more than 8 hours daily
  • Weekly Overtime Threshold: Employees are eligible for overtime if they work more than 40 hours in a week (Sunday to Saturday)

For the current pay period, John works the following shifts.

  • Monday (8:00 AM – 4:00 PM): 8 hours
  • Tuesday (9:00 PM – 3:00 AM): 6 hours
  • Wednesday (8:00 AM – 5:00 PM): 9 hours
  • Saturday (10:00 AM – 6:00 PM): 8 hours
  • Sunday (7:00 AM – 3:00 PM): 8 hours

Using Legion, the rules can be configured to automatically calculate the following:

Regular pay for Monday: 8 hours x $15/hour = $120
Night shift premium for Tuesday: 6 hours x $2/hour = $12
Regular pay for Wednesday: 9 hours x $15/hour = $135
Weekend premium for Saturday: 8 hours x $3/hour = $24
Weekend premium for Sunday: 8 hours x $3/hour = $24
Overtime pay for Wednesday (daily threshold exceeded): 1 hour x $15/hour x 1.5 = $22.50
Weekly total hours: 39 hours (no weekly overtime reached)

Total Weekly Pay:
$120 + $12 + $135 + $24 + $24 + $22.50 = $337.50

In this example, Legion WFM dynamically calculates the pay for an hourly employee based on their shifts, taking into account regular pay, night shift premium, weekend premium, and overtime pay, ensuring compliance with the CBA.

Formulas provide transparency in compliance calculations. Organizations can clearly see how CBA-specific rules are applied within the system, making it easier to validate compliance and demonstrate adherence during labor negotiations, audits, or legal proceedings.

In summary, using formulas within Legion WFM’s compliance rules significantly enhances flexibility in configuring CBA compliance rules. It empowers organizations to adapt to the ever-changing landscape of CBAs, ensuring that even the most intricate and unique provisions are accurately applied within the system. All rules can easily be enforced through Legion Time and Attendance and Automated Scheduling. This flexibility not only streamlines compliance but also provides the agility needed to swiftly respond to changes in labor agreements while maintaining precision and accuracy in workforce management. To learn more, contact us today for a demo of Legion WFM.